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The money of the future
They come with enticing names such as Bitcoin and Ether. However, do cryptocurrencies deliver what they promise?
Cryptocurrencies are not currencies in the everyday sense of the word, like the Swiss franc or the euro. Instead, an increasing number of market participants believe they consti- tute a separate asset category. This asset category has attracted an ever-increasing num- ber of followers in recent years. The term cryptocurrencies now encompasses several thousand digital means of payment, although only a couple of dozen of these are actually used actively.
It should be pointed out that cryptocurrencies have so far proved unsuitable investments for investors with weak nerves: their prices are subject to high levels of volatility. This is also true of Bitcoin, whose long-term trend has nonetheless been upward despite very strong fluctuations. There are a number of reasons for cryptocurrency volatility: Some- times even a rumour on social media is sufficient to send the price of a cryptocurrency soaring into the stratosphere or plunging by an alarming amount. This is an indication that the crypto market is still retail-heavy. Another reason for this volatility is that crypto-related financial products often involve a high degree of leverage.
A handful of cryptocurrencies to become firmly established
While cryptocurrencies may have become increasingly popular among investors in an era of negative interest rates, they are still only a peripheral phenomenon as an everyday means of payment. In Switzerland, for example, online market leader Digitec Galaxus accepts Bitcoin as a means of payment, although volumes are still small. A few shops, res- taurants and online retailers also accept Bitcoin. Moreover, this cryptocurrency can addi-
Digital assets – Everything from a single source
In addition to business accounts for blockchain and crypto companies, along with supervision of initial coin offerings (ICOs), security token offerings (STOs) and initial exchange offerings (IEOs), we also offer reliable trading and secure custody services for digital assets. At the beginning of 2021, we rounded off our innovative crypto services by sound investment advice on and selected investment recommendations for digital assets.
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